Bradford based supermarket chain Morrisons has warned that the consumer will continue to take a hit in the pocket as their company reported a 1% drop in like-for-like sales. The chain stated that they had made a ‘satisfactory start’ to the financial year, but that the economic challenges placed on the consumers would remain challenging.
Morrisons released a statement detailing their sales for the first 13 weeks of the year, this included a fuel rise of 1.5% (3.1% including fuel), however, their like-for-like sales had dropped by 1%, despite being up 0.9% including fuel.
A member of the management team for the fourth biggest supermarket chain in the UK said “As expected, the economic environment for the consumer has remained challenging, with the high price of oil and other commodity prices putting pressure on disposable incomes”.
“Against this backdrop we have continued to keep prices low for our customers without compromising on Morrisons quality.”
They then added: “We continue to focus on the delivery of our previously announced range of strategic and operating initiatives which, combined with a close management of our cost base, gives us confidence of achieving continued profitable growth.”
They finished the statement by saying “The uncertain economic background is expected to remain challenging for the consumer and accordingly the board remains cautious. Our performance in the first quarter was broadly in line with our expectations and our financial outlook for the year remains unchanged.”